chapter one

Question 1

Entrepreneurship

Answer 1

It is the prosses of designing, launching and running a new business along with its financial risks.

Question 2

Self employment

Answer 2

It is where a person is in control of their business ,make decisions regarding it , enjoys the profit and deals with the losses.

Question 3

Micro enterprise

Answer 3

It is a business that its annual turnover does not exceed 500000,does not have more than 10 employees and total assets and financial investment does not exceed 10 mill for manufacturing and 5 mill for service and farming enterprises.

Question 4

Small scale enterprises

Answer 4

It is a business where the annual turnover is between 500000 and 5 mill employs between 10 to 15 e total assets and financial investments for manufacturing sector in plant and machinery
is between ten million and fifty million shillings and for the service sector and farming enterprises
investment in equipment is between five million and twenty million shillings.

Question 5

Distinction between Entrepreneurs and Business person

Answer 5

a)An entrepreneur is an investor and the first creator of a product while a business person can make a business out
of an unoriginal business or product idea.
b)Entrepreneurs are more concerned on changing the world while business persons are doing business for profit
c)Entrepreneurs takes crazy risks, and don’t care of losing money just to pursue their passion while
business persons take calculated and managed
risks.
d)An entrepreneur is a friend and a leader while a businessman is an employer and a manager.

Question 6

Types of Entrepreneurs

Answer 6

a) Innovator: They come up with completely new ideas and turn them into viable business ideas.
b) Imitators: They are the types who copy certain business ideas and improve upon them.
c) Pattern multipliers: Entrepreneurs who expand a business concept through franchises or chains
of similar businesses.
d) Social entrepreneur: It is where an entrepreneur creates product and services to solve social
need and problems

Question 7

Characteristics of Entrepreneurs

Answer 7

• Self-motivated: when you want to succeed you need to be able to push yourself. You aren’t
  answerable to anyone else as an entrepreneur.
• Risk taker: successful entrepreneurs know that sometimes it’s important to take risks.
  Playing it safe sometimes never lead to success as a business owner.
• Flexible: Have the ability to be able to change as needed. Staying on top of your industry
  and be ready to adopt changes in the process and product as they are needed.
• Passion: Successful entrepreneurs are passionate. They feel deeply about their product or
  service or mission.
• Basic money management skills and knowledge: Understand how money works so that
  you know where you stand and so that you run your business on sound principles.
• Network: Being able to connect with others and recognize partnership opportunities can
  take you a long way as a business owner

Question 8

Factors affecting entrepreneurship development: Entrepreneurship is influenced by various
factors: (PESTLIED)

Answer 8

• Economic development.
• Culture.
• Technological development.
• Education.
• Political factor
• Legal factor

Question 9

Importance of enterprenureship.

Answer 9

• Create jobs: As much as entrepreneurs create job themselves. They also create a number
  of jobs opportunities with their business venture and as their businesses grow so the
  opportunities available increases.
• Creates change: When entrepreneurs make a product or explores ideas, it brings in change
  and improvement in the world.
• Entrepreneur give to the society: The more the money they make the more in taxes they
  pay which in turn funds public services. E.g. Bill Gates the founder of Microsoft is the
  biggest donor in charities and non-profit organization.
• Entrepreneurship have independence: They are their own boss this enables to work to their
  capacity and towards achieving the specific goal.
• Freedom of ideas: They are free to implement and make any change in the operation of the
  business

Question 9

Disadvantages of entrepreneurship

Answer 9

• Risk of business failure - There is no certainty of success.
• Long working hours especially in early stages of implementation.
• Income is varied and uncertain - It is difficult to estimate the income that you will be able
  to get in particular day or month